SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17600 / July 8, 2002

   Securities and Exchange Commission v. FoneCash, Inc., and Daniel E.
   Charboneau, Civil Action No. 1 02CV00651RJL (D.D.C. April 8, 2002)

   The Securities and Exchange Commission ("Commission") announced that
   on June 26, 2002, the Honorable Richard J. Leon, United States
   District Judge for the District of Columbia, entered an order of
   preliminary injunction and other relief as to defendants FoneCash,
   Inc. ("FoneCash") and Daniel E. Charboneau ("Charboneau"). The order
   restrained and enjoined FoneCash and Charboneau from violating Section
   17(a) of the Securities Act of 1933, Sections 10(b) and 13(a) of the
   Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5,
   12b-20, 13a-1 and 13a-13 thereunder. The order further restrained and
   enjoined Charboneau from violating or aiding and abetting violations
   of Sections 16(a) of the Exchange Act and Rules 16a-2 and 16a-3
   thereunder.

   FoneCash and Charboneau consented to the entry of this order without
   admitting or denying the allegations set forth in the Commission's
   complaint, filed on April 8, 2002. The complaint alleged that a
   registration statement and amendments, filed with the Commission by
   FoneCash in December 2001, January 2002 and March 2002, and signed by
   Charboneau, contained material misrepresentations and omissions. Such
   misrepresentations included, among other things, the claim that
   FoneCash manufactured credit card terminals under a specified patent
   to which it obtained the exclusive rights in 1997, when in fact, the
   patent had lapsed in 1993. The complaint further alleged that Fonecash
   maintained a website which grossly misrepresented the company's
   business and, through Charboneau, had distributed via the internet
   several misleading press releases which falsely described various
   mergers and acquisitions.

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   report suspicious activity involving possible Internet fraud, visit .

   See also (April 10, 2002)
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Modified 07/08/2002